1. Can we afford to become a City?
  2. Aren't we part of the City of Los Angeles? Is this a "secession"?
  3. Will becoming a city increase my Property Taxes?
  4. What about Eminent Domain? Will the new city automatically use the power of eminent domain to take over my property?

  5. Can we afford to become a City?

    To answer this question we must undergo a Comprehensive Fiscal Analysis. The CFA will be the official report that government agencies will use to ascertain whether or not our community can afford to become a city. If, and only if, the CFA shows fiscal viability will the process continue.

    An Initial Fiscal Analysis completed in 2007 by Burr Consulting, a well-respected regional economics and policy analysis firm, projected that a future City of East L.A. would have $45M in expenses and $51M in revenues, a $6M per year surplus.

    Aren't we part of the City of Los Angeles? Is this a "secession"?

    No. East Los Angeles is not part of any city; it is an unincorporated area, meaning that we are administered by the County of Los Angeles. East L.A. has no city council, no mayor, and no public commissions. That is why the plan for Cityhood requires that we incorporate for the first time, instead of seceding from an existing city like the San Fernando Valley sought to do in 2002.

    Will becoming a city increase my Property Taxes?

    No. Proposition 13 protects residents from tax increases without their consent. In 1978, Prop 13 rolled back property taxes/assessments to 1975 market values, which limited the property tax rate to 1%, and limited future property tax increases. Property taxes cannot be increased by local government even if East LA became its own city.

    In fact, incorporation law requires that a Comprehensive Fiscal Analysis demonstrate fiscal viability for East L.A. with current tax levels, not under possible increases.

    What about Eminent Domain? Will the new city automatically use the power of eminent domain to take over my property?

    No. Eminent Domain is the power of government agencies to take private property for public use so long as the government pays fair compensation. Cityhood for East LA does not affect the existing power of eminent domain; in fact, other government entities, like LA County or LAUSD, already have the power of eminent domain. In addition, the recent passage of Proposition 99 further limits the use of eminent domain against owner-occupied residences for private projects by government agencies.

    Like tax levels, incorporation law requires that a Comprehensive Fiscal Analysis demonstrate fiscal viability for East L.A. with current land uses, without taking into account possible usage of eminent domain.